Every time you venture to your mailbox, you’re likely to find that your credit card company is offering a new rewards card. While such cards may be considered lucrative for the perks they offer to card holders, they can indeed prove troublesome when used improperly or excessively. This article will explore both the pros and cons of rewards cards, and will guide consumers into effective usage methods to ensure that they garner the most benefit from their rewards card.

The initial question which most consumers share is “What is a rewards card?” A rewards card is simply a credit card that offers consumers rewards for usage. These rewards can range from free airfare mileage to free hotel stays. Although the word “free” tends to resonate quite well with consumers, it doesn’t always justify enrolling for another rewards card or upping the usage of an existing one. You may be paying additional money for you free trip and whatnot by using your rewards card than if you were to pay for the trip upfront.

In the context of rewards cards, not all cards are created equal. Some will simply lure you in and ding you without your knowledge. On that note, here are some of the things you should avoid when selecting a rewards card.

High Interest Rate – The majority of rewards credit cards come bundled with inflated interest rates, even more so than traditional credit cards. As you might imagine, the inflated rate is used to offset the cost of the reward which you think you’ll be getting for “free.” If you’re not careful, you may fall into this reward card trap. Thus, whenever considering an offer, be sure to be critical of the rate offered by the card. If it’s excessive, don’t allow yourself to be blinded by the 3-night stay in Cancun. Exercise some restraint and you should manage.

Fixed vs. Variable – Check and double check the sort of interest rate your credit card company offers, whether it be fixed or variable. With fixed rates, your credit card company doesn’t have the opportunity to raise the rate when they wish. However with a variable rate, you have not such luck. Stick with fixed rate rewards cards. Credit companies can pull a bait-and-switch tactic by offering you a variable rate card at a low percentage, and can then switch the interest rate after you’ve enrolled.

Annual Fees – Again, credit card companies can afford to pay for your perks by upping a specific card’s annual fees. Be on the lookout for such inflated fees and avoid cards that are charge noticeably more in annual fees than their counterparts.

While finding the right rewards card can be hassle, there are many rewards to be reaped from having the right one. Below you will find some of the perks that are available to rewards credit card holders.

Redeemable Points – Many rewards cards work a point system. With every transaction you make using the card, you accumulate some points. These points can be used to redeem various things, such as gift certificates, hotel stays, etc. Some card companies may make it difficult to accumulate the needed points for a specific thing you may have your sights on. If you know you’re not an avid credit card user, check whether the rewards card has a limit on the number of point-rewarding transactions you can make or whether there is restrictions that bind you to a specific time period for garnering points.

Cash Back Rewards – Currently, many rewards cards also offer cash back on purchases. A certain percentage of your collective expenditures is returned to you. The specific amount varies, but most rewards cards offer 1% cash back.

Frequent Flyer Miles – Probably one of the most common reward mechanisms for rewards cards is frequent flyer miles. For every expenditure you make, you are rewarded on a per point or mile basis (varies from card to card). When you accumulate the appropriate number of miles or points, you can redeem a free airfare for you or your family.

Frequent Flyer Credit Card Tips
Rewards cards that offer frequent flyer miles can be especially useful for those who are constantly traveling. They can get two things accomplished with a rewards card. They can build their credit while accumulating points towards air travel.

There are some downsides to having a frequently flyer rewards card, however. For one, to accumulate an adequate amount of points or miles, you need to use the rewards card rather extensively. This can prove rather difficult for the average consumer, and can thus be considered a trap which credit card companies place to trap unknowing consumers in. However, if you’re a frequent credit card user and traveler, this card may be for you.

Prospective card holders also need to be careful when reading the terms of the rewards card in respect to frequent flyer rewards. Some companies will limit the number of points or mile an individual can accumulate, or will set a specific time frame where point accumulation can occur. Thus, be diligent in reading all the fine print.

While these, as do other rewards card, have their drawbacks, they can be substantially rewarding to those who travel for a living. As said above, these sorts of cards can accomplish two or more things at a time when used effectively.

The Perfect Card for Me
You yourself are responsible for defining the perfect card for you. In general terms, however, you should look for a card that offers a low interest rate, low annual fees, and a fixed rate. However, the specific rewards mechanism is your choice. You should conduct adequate research before selecting your specific rewards mechanism, as far as time and other restrictions go.

A rewards credit card can without a doubt prove beneficial to most, if not all consumers. While there is some homework involved in uncovering the perfect card, it can well be worth it.

Rewards Credit Cards
	Virgin Flyer Credit Card 20.99%  more» You’ll earn 1 Velocity Point per $1 spent up to $1,500 per month and then 1 Velocity Point for every $2 spent.
	ANZ Frequent Flyer Platinum 19.74%  more» Receive 20,000 Bonus Qantas Frequent Flyer points

We love our frequent flyer credit cards, and with good reason. Frequent flyer credit cards are designed specifically to reward people with travel by spending money on anything. Business travelers have long been cashing in on their free frequent flyer points and enjoying the other travel perks and benefits offered by frequent flyer credit cards.

If you spend money on travel but have yet to treat yourself to the benefits of a airline credit card, there is no better time to shop for one than right now. Airlines have partnered with Australian banks and credit card companies to develop a wide range of  frequent flyer point credit cards, making it easy for you to find the card that gives you more of what you want.

Frequent flyer credit cards are a great way to earn rewards points. Use your frequent flyer credit card to pay for everything, earn frequent flyer points for every dollar you spend, enjoy the security of purchase protection and customer service, and leave the cash, checkbooks and traveler’s checks at home. Carry just one great frequent flyer credit card and you are covered for all purchases, contingencies, emergencies, and cash advances.

And many airline credit cards offer benefits in addition to frequent flyer points. The Citibank Emirates Credit Card, for example, offers 1.5 frequent flyer points for every dollar spent, private chauffeur service to and from Australian airports, a low interest rate of 4.90% on balance transfers for the lifetime of the balance, and a very low annual fee (for a frequent flyer card) of only $65.

The ANZ Frequent Flyer Visa gives you a 2.9% APR on balance transfers for one year, in addition to 1 frequent flyer point per dollar spent, up to $1,500 every month. After that, you still receive 1 point for every $2 spent, up to $5,000 per month, in addition to unlimited bonus points. An APR of 17.99%, lower than most airline credit cards, affordable annual fee of $95, and up to 3 additional cards on which to earn points, make the ANZ Frequent Flyer Visa a card the whole family can use and enjoy. And with the ANZ Falcon security system, all cards on your account are monitored around the clock.

Do you want instant gratification? The AMEX Qantas Premium Credit Card gives you up to 7,000 bonus frequent flyer points with your very first purchase. Thereafter, Australian consumers earn a generous 2.25 frequent flyer points for every dollar spent on Qantas products, and 1.25 frequent flyer points for every dollar spent everywhere else. Points are automatically transferred to your frequent flyer account every month, making the annual fee of $249 a worthwhile investment if you travel often.

If you want an airline credit card with no annual fee, the AMEX Blue Sky Credit Card is for you. Earn 1 point for every dollar you spend with this frequent flyer card and get the freedom to book your own flights, hotels, car rentals and cruises wherever and whenever you chose. Together with automatic travel insurance, car rental insurance and worldwide travel assistance, the AMEX Blue Sky Credit Card is the perfect card for holiday and vacation travel.

Applying online is safe and easy. Applications are processed immediately so you can start using your card right away. What are you waiting for? Get your frequent flyer credit card now and start getting frequent flyer points to travel!

• 

  ANZ Frequent Flyer Platinum
  Receive 20,000 Bonus Qantas Frequent Flyer points
  19.74% interest – $295.00 per annum

• 

  AMEX Blue Sky Credit Card
  Earn 1 blue sky point for every dollar spent, with no expiry of points for the life of your card
  19.99% interest – $0.00 per annum

• 

  AMEX Qantas Premium Credit Card
  Earn 2.25 point for every dollar spent
  20.49% interest – $249.00 per annum

• 

  Citibank Emirates Credit Card
  Earn 3 Miles per AU$1 spent
  20.74% interest – $229.00 per annum – 1.90% for 12 months balance transfer

The best credit card is the one that meets your needs and you can afford. The wrong credit card can cost you a lot more money if you do know what you are being charged. Generally if you need a credit card, your situation will determine which bank and which credit card is best.

Credit Card balance, will you leave a small or large balance on your credit card? If you plan to have a fairly large credit card balance then a low interest credit card would be the best credit card.

If you don’t plan to use a credit card very often then a low fee credit card would minimize the fees and charges you would otherwise pay for a credit card.

If you plan on spending a lot of money through your credit card either for business or lifestyle spending, you should look into a reward or frequent flyer type card and be rewarded, these credit card can be gold or platinum type credit cards and come with loads of features.

Your current financial situation along with the credits cards intended purpose should guide you to the right decision. Don be in a rush and make a sensible choice and you can enjoy the credit card that complements your life’s requirements